VAT Deregistration

According to FTA guidelines, businesses can apply for VAT deregistration in two main scenarios:

1. Mandatory Deregistration

FTA requires mandatory VAT deregistration if your business fulfills any of the following conditions:

• Cessation of Taxable Supplies: If your business stops making taxable supplies, you must apply for VAT termination. There’s no point in remaining VAT-registered if your business doesn’t have any taxable supplies.
• Threshold Falls Below AED 375,000: If your taxable supplies fall below the mandatory threshold of AED 375,000 within 12 months, you should deregister immediately.

In both cases, the FTA recommends deregistering within 20 days of ineligibility. Failure to do so can result in hefty fines. Hiring a firm that provides excellent accounting services can help ensure smooth operations and avoid penalties.

2. Voluntary Deregistration

Apart from mandatory VAT termination, business owners can also voluntarily deregister their businesses under these conditions:

• Temporary Business Closure: If you temporarily close your business with plans to resume later, you can deregister during this period.
• Taxable Supplies Below AED 187,500: If your taxable supplies have fallen below AED 187,500 for the last 12 months, you can temporarily deregister until you meet the threshold again.

The VAT deregistration process can be daunting and challenging, often delayed due to minor issues like missing documents. These hiccups can be easily avoided with professional help. Our goal is to help businesses avoid unnecessary delays and penalties. With decades of experience, we understand these procedures inside out. Having performed them dozens of times, our professionals know the best practices, saving you time. Benefit from our experience to simplify your journey.